Sandvik

Interim / Quarterly Report • Jul 16, 2025

Interim report second quarter and first six months 2025

Order intake volumes at all-time high

• Total order intake development was stable compared to last year and amounted to SEK 32,206 million (32,354). At fixed exchange rates, order intake increased by 10%, and organically by 10%
• Total revenues decreased by 5% compared to last year and amounted to SEK 29,700 million (31,419). At fixed exchange rates, revenues increased by 4%, and organically by 3%
• Adjusted EBITA decreased by 8% and amounted to SEK 5,629 million (6,149), corresponding to a margin of 19.0% (19.6). Items affecting comparability amounted to SEK -643 million (-131) mainly related to restructuring initiatives in Machining
• Profit for the period amounted to SEK 3,216 million (3,462) and earnings per share, diluted, were SEK 2.56 (2.76). Adjusted earnings per share, diluted, were SEK 2.96 (3.10)2, 3)
• Free operating cash flow amounted to SEK 5,090 million (4,198)
• Strong momentum in Mining. Sandvik made two acquisitions in strategic priority areas. The first phase of the 2025-2030 restructuring initiatives in Machining were implemented

Revenue growth at fixed exchange rates 4%

Adj. EBITA margin 19.0%

1.3

Financial net debt/EBITDA

Financial overview

MSEK	Q2 2024	Q2 2025	Change %	Q1-Q2 2024	Q1-Q2 2025	Change %
Order intake	32,354	32,206	0	64,336	64,969	1
Revenues	31,419	29,700	-5	60,421	59,001	-2
Adjusted EBITA1)	6,149	5,629	-8	11,430	11,398	0
Adjusted EBITA margin	19.6	19.0	–	18.9	19.3	–
Adjusted EBIT2)	5,688	5,194	-9	10,511	10,457	-1
Adjusted EBIT margin	18.1	17.5	–	17.4	17.7	–
Adjusted profit before tax2, 3)	5,124	4,855	-5	9,442	9,821	4
Profit for the period	3,462	3,216	-7	4,709	6,952	48
Adjusted profit for the period2, 3)	3,897	3,713	-5	7,179	7,494	4
Earnings per share, diluted, SEK	2.76	2.56	-7	3.75	5.54	48
Adjusted earnings per share, diluted, SEK2, 3)	3.10	2.96	-5	5.72	5.97	4
Free operating cash flow	4,198	5,090	21	7,968	8,899	12

1) Adjusted for items affecting comparability (IAC) on EBITA of SEK -643 million (-131) in Q2 2025 and SEK -699 million (-2,639) YTD 2025. 2) IAC on EBIT of SEK -643 million (-134) in Q2 2025 and SEK -699 million (-2,763) YTD 2025. 3) Adjusted for IAC regarding tax of SEK 146 million (-301) in Q2 2025 and SEK 157 million ( 294) YTD 2025.

Tables and calculations in the report do not always agree exactly with the totals due to rounding. Alternative performance measures and definitions used in this report are explained on page 22. For more information see home.sandvik.

Q1 SANDVIK INTERIM REPORT 2023

We had a strong start to 2023. With good momentum and solid business execution we delivered double-digit revenue growth, and top line levels were on an all-time high. Our short-cycle

ments and the mining environment remained robust, with high

growth strategy with the completion of two acquisitions. Great momentum was also seen in our battery electric vehicle (BEV) business. The fact that our Digital Mining Technologies division had exceptionally strong organic order growth in the quarter is a good example of the progress we make in our strategic focus

Total order intake and revenues grew at fixed exchange rates, by 6% and 18%, respectively. Organic order intake grew by 2% and revenues by 13%, despite tough comparables. If we exclude Russia, organic orders and revenues grew by 5% and 16%, respectively. Adjusted EBITA margin was 19.8%, with

price compensating for cost inflation, but currency effects from

impact of 100 basis points. Free operating cash flow amounted

revaluation on unhedged balance sheet items had a dilutive

Order intake levels in Sandvik Mining and Rock Solutions did once again beat previous records. We noted particularly strong growth in our biggest equipment division, Load and Haul, and the aftermarket division Parts and Services. Order intake, at fixed exchange rates, and excluding Russia, grew by 8%, of which 6% organic. The shift to battery electric vehicles (BEVs) accelerated further. We announced several BEV orders in the quarter, including two of our three biggest BEV orders ever. To support the growing BEV market, Sandvik announced the investment in a new production site in Malaysia. We plan to get production started by the end of the year. We also won an order

from the world's largest copper producer, to supply an Auto-Mine® Fleet automation system with six autonomous loaders. Revenues, at fixed exchange rates, and excluding Russia, grew

aftermarket activity. We took additional steps in our shift to

business noted positive demand from all customer seg-

CEO'S COMMENT

areas.

to SEK 3.7 billion.

by 26%, of which 23% organic.

q

growth, and all business areas are now compensating fully for cost inflation. We continued to leverage on our leading global CEO's comment

and revenues grew by strong 19%.

areas and segments. Moving forward, we will continue to leverage on our strengths, and by doing so, create value for all our stakeholders. Stefan Widing President and CEO I am proud of what the Sandvik team has achieved this quarter. Despite the challenging geopolitical- and macro environment, we delivered a strong second quarter. Order intake grew by 10% organically and reached an all-time high, while revenues increased by 3%. The organization's ability to continuously adapt to new challenges is proven again as we have already fully mitigated the impact of the initial tariffs and trade barriers within the quarter. The operating profit margin of 19.0% is a good achievement given the currency headwinds and volume challenges in key segments, and with support from efficiency measures, pricing and our order backlog, we continue our work to get back into our target margin range. We also delivered a good cash flow of SEK 5.1 bn, with a cash conversion of 94%.

Sandvik Rock Processing Solutions' organic orders declined year on year. The aftermarket business held up well, while the equipment business was down due to both tough comparables, and softer infrastructure demand. The integration of SP Mining is progressing well and is an important driver of the double-digit growth in the quarter. Order intake and revenue growth, at fixed exchange rates, and excluding Russia, was 20% and 43%, respectively. Organic orders, adjusting for Russia, declined by 6%,

Sandvik Manufacturing and Machining Solutions reached record order levels driven by Europe. The demand was solid from all segments, and daily order intake grew double digits in aerospace and energy. In the quarter, we acquired 95% of the shares of the Irish-based company Premier Machine Tools. The company is a well-established solutions provider to the medical machining segment – which is one of Sandvik's strategic priority areas. Order intake growth, at fixed exchange rates, excluding Russia, grew by 11% of which organic 7%. The daily order intake in the first two weeks of April was slightly up compared to

I am pleased with the performance in the quarter, with solid execution on our shift to growth strategy. We delivered strong

positions, and it is clearly visible that our broad and customer-focused offerings place us in the lead in important growth

In May we held a Capital Markets Day at our Machining factory in Gimo, Sweden. We reconfirmed our financial targets for the period until 2030 and also presented our updated strategy, Advancing to 2030, for how to achieve those targets in our business areas. We continued to make progress in our strategic priority areas also this quarter. Revenue growth in the software businesses and in surface mining was strong, and we made two acquisitions that will further expand our reach in faster growing segments.

Very strong momentum was noted in Mining with the highest order intake ever in the quarter. Organic order intake grew by 18%, driven by high demand for equipment, while parts and services continued to report high single-digit growth. We received

FOR ADDITIONAL INFORMATION, PLEASE CALL SANDVIK INVESTOR RELATIONS +46 8 456 11 00 OR VISIT HOME.SANDVIK 2

several major orders, and I am pleased that our focused efforts in digital and new technologies continue to deliver results. During the quarter, we received our largest battery-electric vehicle (BEV) order to date. Excluding major orders organic growth was 14%, reflecting a robust underlying demand for Sandvik's solutions. Organic revenues grew by 7%, and our focus is now on ramping up our manufacturing and delivery capabilities to capture the strong momentum in the market.

Rock Processing noted solid demand in the mining business, while the infrastructure market remained subdued. Organic order intake grew by 8%, driven by high investments in new equipment, and revenues grew by 2%. During the quarter, we introduced our next generation of upgraded jaw crushers. In July, we also completed the acquisition of OSA, expanding our presence in the growing demolition and recycling segment.

"We have delivered a strong quarter that once again proves our leading positions and business resilience"

Organic order intake in Machining and Intelligent Manufacturing was stable at -1%. Cutting tools orders declined at low-single digits but were partly offset by solid development in the powder business. Order intake in the software business increased low-single digits on tough comparables but continued to show robust performance with high-single digits revenue growth. We continued to note positive momentum in aerospace, and industry projections are very favorable for the years to come. Demand in automotive and general engineering was impacted by the challenging business cycle. In June, we completed the acquisition of Verisurf, a US-based 3D metrology software solutions provider with exposure to strategically important segments such as aerospace and defense. At our Capital Markets Day, we announced planned restructuring initiatives in Machining for the 2025-2030 period, aimed at driving operational efficiency, margin resilience, and support growth opportunities. In June, we announced the first phase of those initiatives.

We have delivered a strong quarter that once again proves our leading positions and business resilience. Several of our key segments show strong momentum and there are signs of bottoming out in the weaker ones. However, the high uncertainty and challenging geopolitical- and macro environment is expected to continue, as showcased by new tariff announcements at the time of the release of this report. We will continue to take mitigating actions to limit the impact of new trade policies if and when they become reality. Sandvik has industry-leading platforms to build on and we have repeatedly proven our capability to deliver through challenging periods. I want to extend a warm thanks to all employees for their hard work and commitment in delivering consistently on Sandvik's strategy and targets in these turbulent times.

Stefan Widing President and CEO

Order intake and revenues

Growth Q2, %	Order intake	Revenues
Organic	10	3
Structure	1	1
Organic & structure	10	4
Currency	-11	-10
Total	0	-5
Change compared to same quarter last year.

Total order intake development was significantly impacted by currency, and was stable year on year. At fixed exchange rates, order intake grew by 10%, of which 10% organically. Total revenues decreased by 5%. At fixed exchange rates, growth was 4%, of which organic 3%. Positive book to bill of 108%.

Strong momentum was noted in the mining industry. High investments in equipment and good demand for parts and services drove Sandvik's strong order intake in the quarter. Mineral price levels, capex projections, and announcements of regulatory relief in certain countries are expected to support a healthy demand ahead. Infrastructure activity remained subdued, but industry stock levels have been reduced in major regions such as North America and Europe. The Mining business area noted strongest demand in North America and Australia. Business area Rock Processing reported the strongest development in Africa, Middle East.

Industrial manufacturing activity remained sluggish, although recent PMIs signaled an improved sentiment in most major regions. Demand in general engineering remained soft, while smaller segments, such as defense grew at a good pace. The underlying demand in the aerospace segment was solid, with strong order intake growth in North America, adversely impacted by a decline in Europe due to timing. Fundamentals in the segment continue to be supportive, with aerospace industry projections showing over ten years of backlog with the large OEMs. Challenges in automotive remained, and Sandvik noted weak demand in automotive.

Overall demand for Machining and Intelligent Manufacturing was slightly positive in North America, while Europe and China declined year on year.

Order intake and revenues

Revenue growth

Q2 Underlying market development			Mining	General engineering	Infrastructure	Automotive	Aerospace	Other
of 2024 revenues			51%	20%	9%	6%	4%	10%
	% of 2024 Group revenue	Order intake Y/Y (excl. major orders)
Europe	26%	-4% (0%)
North America	25%	32% (11%)
Asia	18%	-5% (2%)
Africa, Middle East	12%	4% (-2%)
Australia	12%	19% (27%)
South America	7%	14% (14%)

Other includes mainly energy, die and mould, electronics, medical, pump and valve, rail and defense

Earnings

Adjusted gross profit1 amounted to SEK 12,256 million (13,146), corresponding to a margin of 41.3% (41.8). Adjusted sales and administration costs2 amounted to SEK 6,556 million (6,955), and the ratio to revenue remained stable at 22.1% (22.1).

Adjusted EBITA decreased by 8% to SEK 5,629 million (6,149), corresponding to a margin of 19.0% (19.6). Lower volumes and currency headwinds impacted the margin negatively, partly mitigated by savings. Price fully off-set cost inflation and tariffs. Savings from the restructuring programs had a year-on-year bridge effect of total SEK 206 million. The impact from transaction and translation exchange rates was negative SEK 702 million year on year, and dilutive to the margin by 40 basis points. Acquisitions were slightly dilutive to the margin. Items affecting comparability amounted to SEK -643 million (-131), mainly related to restructuring costs for initiatives implemented in the Machining business area.

The interest net decreased year on year to SEK -239 million (-397) due to lower borrowing volumes and lower borrowing yield. Net financial items of SEK -339 million decreased year on year (-563) mainly due to the lower interest net.

The tax rate, excluding items affecting comparability, was 23.5% (23.9). The reported tax rate was 23.6% (30.6). The normalized tax rate was 23.5% (23.9), in line with guidance.

Profit for the period amounted to SEK 3,216 million (3,462), corresponding to earnings per share, diluted, of SEK 2.56 (2.76) and adjusted earnings per share, diluted, of SEK 2.96 (3.10). Adjusted earnings per share, diluted, excluding amortization of surplus values, amounted to SEK 3.25 (3.41).

1) New reported KPI from Q2, 2025: Adjusted gross profit excluding amortization of surplus values, changed from previous Adjusted gross profit including amortization of surplus values 2) New reported KPI from Q2, 2025: Adjusted sales and administration costs excluding amortization of

surplus values changed from previous adjusted sales and administration costs including amortization of surplus values

Adjusted EBITA

Adjusted earnings per share

Capital employed decreased year on year to SEK 139.3 billion (145.3) and sequentially (140.5) mainly due to changed exchange rates. Return on capital employed increased year on year to 14.8% (14.1) and decreased sequentially (15.4). Return on capital employed excluding amortization of surplus values improved year on year to 16.2% (15.5) and decreased sequentially (16.7).

Net working capital decreased year on year to SEK 34.3 billion (37.9), due to changed exchange rates and reduced volumes, and was relatively stable sequentially (33.9). Net working capital in relation to revenues decreased slightly to 29.6% (30.2) year on year and sequentially (29.8).

Investments in tangible and intangible assets (capex) amounted to SEK 1.0 billion (1.1). The investments corresponded to 111% of depreciation. Financial net debt decreased year on year to SEK 37.1 billion (40.5) and increased sequentially (31.2). The sequential increase was due to the dividend payout of SEK 7.2 billion.

The financial net debt/EBITDA ratio was 1.3 (1.5), with an increase sequentially (1.1). Total net debt of SEK 45.3 billion (49.0) decreased year over year and increased sequentially (39.7).

Free operating cash flow improved versus last year to SEK 5.1 billion (4.2), mainly due to a more favorable change in net working capital.

Financial net debt/EBITDA

Free operating cash flow, MSEK	Q2 2024	Q2 2025
EBITDA	7,489	6,374
Non-cash and other items1)	-506	561
EBITDA adj for non-cash and other items	6,984	6,936
Capex	-1,110	-950
Net working capital change	-1,676	-896
Free operating cash flow	4,198	5,090

1) Other items include payment to pension funds, rental equipment, lease payments and proceeds from sale of assets.

Free operating cash flow

Mining

• All-time high order intake
• Organic order intake growth of 18%
• Largest battery-electric vehicle order to date

Growth Q2, %	Order intake	Revenues
Organic	18	7
Structure	0	0
Organic & structure	18	7
Currency	-13	-12
Total	5	-4

Change compared to same quarter last year.

Order intake and revenues

• Solid momentum and broad-based demand, with record high order intake
• Strong organic order intake growth, driven by the equipment divisions. Highsingle digits growth in parts and services
• Total order intake increased by 5%. At fixed exchange rates, order intake grew by 18%, of which organic 18%
• Five major orders received in the quarter, totaling SEK 2.1 billion (1.5). Excluding major orders organic order intake increased by 14%
• Strongest organic order intake growth was noted in North America of 70% (excluding major orders 24%), followed by South America 22%. Australia grew by 20% (excluding major orders, by 29%)
• Organic order intake for aftermarket increased by 3%, while equipment orders grew by 50%
• The aftermarket business accounted for 69% (70) of revenues while the equipment business accounted for 31% (30)

Adjusted EBITA

• Adjusted EBITA amounted to SEK 3,144 million (3,356), corresponding to a margin of 20.3% (20.8). Low leverage driven by currency effects from revaluation of unhedged balance sheet items and ERP go-live implementation. Tariffs were fully off-set by surcharges
• Savings from the restructuring programs had a positive bridge effect of SEK 37 million
• Exchange rates had a negative impact of SEK 350 million year on year but was accretive to the margin by 30 bps (larger negative impact on top line)

Shift to growth

During the quarter Sandvik celebrated the inauguration of a new surface production line at the main site in Finland. The initiative follows Sandvik's recent establishment of a dedicated surface test area and further supports Sandvik's strategic focus on growing on surface. A transformation driven by rising global demand for surface products and an expanding product portfolio.

In June, Sandvik introduced AutoMine® Surface Fleet, a new feature that now enables operators to manage a larger number of Sandvik surface i-series drill rigs from any connected site location. The new solution delivers great flexibility while reducing downtime and improving productivity during shift changes as well as safer mining operations.

Several major orders were received in the quarter. Amongst others, Sandvik's largest battery-electric vehicle (BEV) order placed by South32, and another one for underground mining equipment from La Cantera Desarrollos Mineros, one of Mexico's leading underground mining contractors.

Order intake, revenues and book-to-bill

Financial overview, MSEK	Q2 2024	Q2 2025	Change %	Q1-Q2 2024	Q1-Q2 2025	Change %
Order intake	17,043	17,888	5	32,891	35,025	6
Revenues	16,151	15,469	-4	30,463	30,144	-1
Adjusted EBITA1)	3,356	3,144	-6	5,960	6,202	4
Adjusted EBITA margin,%	20.8	20.3	–	19.6	20.6	–
Number of employees2)	16,891	17,795	5	16,891	17,795	5

1) EBITA adjusted for items affecting comparability of SEK -19 million in Q2 2025 (-20) and SEK -44 million (-541) YTD 2025. For more information see page 20. 2) Full-time equivalent.

For additional information, please call Sandvik Investor Relations +46 8 456 11 00 or visit home.sandvik

Rock Processing

• Strong organic order intake growth
• Solid demand in mining
• Launch of new jaw crusher series

Order intake	Revenues
8	2
0	0
8	2
-10	-10
-3	-7

Change compared to same quarter last year.

Order intake and revenues

• Solid momentum in mining, while activity in infrastructure market remained low
• Total order intake decreased by 3%. At fixed exchange rates, order intake increased by 8%, of which organic was 8%
• Two major orders received in the quarter totaling SEK 145 million (0). Excluding major orders, organic order intake grew by 2%
• Organic order intake for equipment increased by 20% while aftermarket was stable
• Strong organic order intake growth was reported in Africa, Middle East of 60%, followed by Australia of 16%. Organic order intake in Asia grew by 9% (excluding major orders, declined year on year), and Europe and North America was down 3% and 5%, respectively
• The aftermarket business accounted for 59% (59) of revenues while the equipment business accounted for 41% (41)

Adjusted EBITA

• Adjusted EBITA amounted to SEK 365 million (409) corresponding to a margin of 14.6% (15.1). Savings contributed positively, off-set by negative impact from exchange rates. Tariffs were fully off-set by surcharges
• Savings from the restructuring programs had a positive bridge effect of SEK 15 million
• Exchange rates had a negative impact of SEK 65 million year on year, corresponding to a dilution of 100 basis points

Shift to growth

During the quarter, Sandvik announced its new upgraded jaw crusher range. The new generation of crushers improves safety and usability, optimizes crushing performance and with clear sustainability gains. On July 1, Sandvik completed the acquisition of OSA, an Italy-based manufacturer of demolition tools and hydraulic hammers.

Financial overview, MSEK	Q2 2024	Q2 2025	Change %	Q1-Q2 2024	Q1-Q2 2025	Change %
Order intake	2,691	2,616	-3	5,639	5,480	-3
Revenues	2,704	2,505	-7	5,150	5,120	-1
Adjusted EBITA1)	409	365	-11	735	760	3
Adjusted EBITA margin,%	15.1	14.6	–	14.3	14.8	–
Number of employees2)	2,781	2,751	-1	2,781	2,751	-1

1) EBITA adjusted for items affecting comparability of SEK -7 million in Q2 2025 (-12) and SEK 41 million (-407) YTD 2025 For more information see page 20. 2) Full-time equivalent.

Machining and Intelligent Manufacturing

– Stable order intake development

• Good demand in aerospace, tungsten powder and in smaller segments within other
• High-single digits revenue growth in software

Growth Q2, %	Order intake	Revenues
Organic	-1	-1
Structure	1	2
Organic & structure	0	1
Currency	-7	-7
Total	-7	-7

Change compared to same quarter last year.

Order intake and revenues

• Demand for cutting tools declined year on year. Strong development was noted in the powder business. Software orders increased low-single digits on tough comparables but revenues grew by high-single digits
• Organic order intake in aerospace developed positively driven by North America. Automotive and general engineering declined year on year, while the other segment was stable year on year
• Total order intake decreased by 7%. At fixed exchange rates, order intake was stable of which organic -1%
• Organic order intake in North America increased by 1%, and declined by 3% in both Asia and Europe
• The number of working days had a -0.6% impact on orders and revenues. Tariff surcharges had a +0.7% impact on orders and +0.6% on revenues
• Daily order intake in the first two weeks of July was stable compared to the second quarter, taking normal seasonality into account.

Adjusted EBITA

• Adjusted EBITA amounted to SEK 2,297 million (2,579), corresponding to a margin of 19.6% (20.5). Good price execution and savings was negatively off-set by volumes and currency. Tariffs were fully off-set by surcharges
• Savings from the restructuring programs had a positive bridge effect of SEK 153 million
• Acquisitions had a dilutive effect on the margin of 30 basis points
• Exchange rates had a negative impact of SEK 262 million year on year, corresponding to a dilution of 60 basis points

Shift to growth

Sandvik introduced several innovations. The new Cimatron DieQuote is a cloud-based software solution that leverages intelligent algorithms and customizable design parameters and provides improved efficiency, productivity and accuracy. Sandvik also introduced the Octomill TM 06, a new indexable face milling cutter from Seco which offers high edge utilization and light cutting techniques as well as the advantages of single-sided inserts, such as efficient edge use and smoother cutting performance.

During the quarter, Sandvik completed the acquisition of Verisurf Software Inc., a US-based 3D metrology software solutions provider. Verisurf will complement and enhance Sandvik's position in industrial metrology.

Order intake, revenues and book-to-bill

Adjusted EBITA

Financial overview, MSEK	Q2 2024	Q2 2025	Change %	Q1-Q2 2024	Q1-Q2 2025	Change %
Order intake	12,621	11,702	-7	25,805	24,464	-5
Revenues	12,564	11,725	-7	24,808	23,736	-4
Adjusted EBITA1)	2,579	2,297	-11	5,064	4,803	-5
Adjusted EBITA margin,%	20.5	19.6	–	20.4	20.2	–
Number of employees2)	20,079	20,448	2	20,079	20,448	2

1) EBITA adjusted for items affecting comparability of SEK -617 million in Q2 2025 (-99) and SEK -695 million (-1,620) YTD 2025. For more information see page 20. 2) Full-time equivalent

• TRIFR reached all-time low
• Sandvik sustainability award to Vericut Optimizer
• Featured as one of the World's Most Sustainable Companies

During the quarter

The Total Recordable Injury Frequency Rate (TRIFR) reached an all-time low of 2.6, down from 3.2 in the same period last year, while the Lost Time Injury Frequency Rate (LTIFR) remained stable at 1.1. This marks Sandvik's best safety performance to date.

Scope 1-2 emissions totaled 35.3 ktons, representing a 1% reduction compared to the same period last year. Waste circularity levels amounted to 73.3% (75.2), a decrease of 3% compared to the same quarter last year.

Sandvik has started to provide product-specific CO2e emission calculations to help customers better understand the carbon footprints of Sandvik's mining equipment. The methodology takes a life cycle perspective and is third-party verified. This initiative is part of the broader sustainability strategy, which focuses on innovation, resource efficiency, and circularity. By providing verified emissions data, Sandvik not only enhance transparency but also support customers in achieving their own sustainability goals.

Sandvik was featured as one of the World's Most Sustainable Companies of 2025, according to a ranking by TIME and Statista. Out of 500 companies, Sandvik was ranked 266th. This recognition underscores Sandvik's strategy of having sustainability integrated into our business model.

Tool path optimization solution honored with Sandvik Sustainability Award

The Sandvik Sustainability Award in Memory of Sigrid Göransson for 2025 was awarded to the tool path optimization solution Vericut® Optimizer. In a cooperation between Vericut and Seco, using Vericut® Optimizer to optimize numerical control (NC) programs, manufacturers can reduce cycle times, energy consumption, and tool wear. As a stand-alone, scalable digital tool, Vericut® Optimizer enables companies of all sizes to improve productivity and sustainability with no prerequisites required. By merging smart data, automation, and deep machining expertise, this partnership is reshaping the path toward circularity and climate-smart manufacturing. The offering is a simple and user-friendly process-efficient solution that improves transparency as well as traceability of materials.

1) A new methodology for the Net Zero KPI reporting have been implemented starting Q1 2025, allowing for historical data for acquisitions to be added and divestments to be removed to reflect the current organizational structure and for better comparability over time. The baselines have been adjusted accordingly.

Safety

Share of female managers

Sustainability overview	Q2 2024	Q2 2025	Change %	R12
Total waste, thousand tonnes 2)	18.0	15.6	-13	66.3
Waste circularity, % of total	75.2	73.3	-3	73.7
Total CO2, thousand tonnes 2)	35.5	35.3	-1	143.2
Total recordable injury frequency rate, R12M frequency / million working hours	3.2	2.6	-18	2.6
Lost time injury frequency rate, R12M frequency / million working hours	1.1	1.1	0	1.1
Share of female managers, %	20.5	20.8	1	20.5

2) Excluding tailings, digestion sludge, foundry sand and slag to disposal. For definitions see home.sandvik

For additional information, please call Sandvik Investor Relations +46 8 456 11 00 or visit home.sandvik 9

Acquisitions and divestments

Acquisitions during last 12 months

Business area	Company/unit	Acquisition date	Revenues	No. of employees
2024
Machining and Intelligent Manufacturing	Suzhou Ahno Precision Cutting Tool Technology Co., Ltd.	July 1, 2024	1.2 BSEK in 2023	1,200
Mining	Universal Field Robots	December 2, 2024	80 MSEK 12M Q3 '23-Q2'24	40
2025
Machining and Intelligent Manufacturing	FASTech Inc.	January 2, 2025	6.0 MUSD in 2024	8
Machining and Intelligent Manufacturing	ShopWare, Inc.	February 3, 2025	12.4 MUSD in 2024	21
Machining and Intelligent Manufacturing	MCAM Northwest, Inc.	February 3, 2025	2.6 MUSD in 2024	9
Machining and Intelligent Manufacturing	OptiPro Systems, LLC	February 3, 2025	2.6 MUSD in 2024	9
Machining and Intelligent Manufacturing	CadCam Solutions, Inc.	March 3, 2025	4.5 MUSD in 2024	4
Machining and Intelligent Manufacturing	CamTech Engineering Services, LLC	March 3, 2025	2.0 MUSD in 2024	3
Machining and Intelligent Manufacturing	Barefoot CNC, Inc.	March 3, 2025	3.1 MUSD in 2024	6
Machining and Intelligent Manufacturing	CIMCO PP ApS	March 3, 2025	7.4 MSEK in 2024	3
Machining and Intelligent Manufacturing	Verisurf Software, Inc.	June 2, 2025	130 MSEK in 2024	44

The acquisitions during 2025 were made through net asset deals, except for CIMCO PP ApS and Verisurf Software, Inc. where 100 percent of shares and voting rights were acquired.

February 28, 2025, Sandvik also acquired the remaining 28 percent of the shares in Suzhou Ahno, through the utilization of a call option. After the acquisition Sandvik owns 100 percent of the shares.

Sandvik received control over the operations on the date of closing. No equity instruments have been issued in connection with the acquisitions. The acquisitions have been accounted for using the acquisition method.

Contributions from business acquired in 2025, MSEK
Contributions as of acquisition date
Revenues	111
Profit/loss for the year	-36

Contributions if the acquisition date would have been January 1, 2025
Revenues	211
Profit/loss for the year	-26

MSEK	Purchase price on cash	Preliminary	Preliminary other
	and debt free basis	goodwill	surplus values
Acquisitions 2025	981	623	411

Divestments during last 12 months

In August 2024, Sandvik divested the engineer-to-order business of DWFritz, following the announced intention to exit non-strategic businesses. The divestment incurred a capital loss, including transactional costs, of SEK 248 million in the third quarter of 2024 and had a negative cash flow effect on the Group of SEK 30 million. Sandvik acquired DWFritz in 2021, with the intention to grow the ZeroTouch® business of DWFritz. The ZeroTouch® business is not part of the divestment, and will remain a part of Sandvik.

Significant events

During the second quarter

• On April 4, 2025, Sandvik signed an agreement to acquire Osa Demolition Equipment S.r.l. (OSA), an Italy-based manufacturer of demolition tools and hydraulic hammers.
• On June 3, 2025, Sandvik announced the completion if the acquisition of Verisurf Software Inc., a US-based 3D metrology software solutions provider. The company will be reported as a separate business unit within the business area Machining and Intelligent Manufacturing.
• On June 24, 2025, Sandvik announced the implementation of the first phase of restructuring measures that will be implemented in the business area Machining during the course of the 2025-2030 period. The measures include optimizing the structure of the organization and consolidation of productions units.

After the second quarter

– On July 1, 2025, Sandvik announced the completion of the acquisition of Osa Demolition Equipment S.r.l. (OSA), an Italy-based manufacturer of demolition tools and hydraulic hammers. OSA will be reported as a business unit within the Attachment Tools division in the business area Rock Processing.

First six months 2025

Demand for Sandvik's solutions in the first six months varied between the segments, and by region. Strong momentum was noted in the mining industry, and consequently led to strong order intake growth. Good demand was also noted in aerospace segment, especially North America and Europe. General engineering and infrastructure segment remained hampered by the macroeconomic- and geopolitical disturbances. The announcements of tariffs between US and Europe impacted the pricing- and demand positively, for Sandvik's tungsten powder. Tariff surcharges were implemented by all business areas to a majority of customers.

Total order intake grew by 1% and, at fixed exchange rates, 7%. Organically order intake increased by 6%. Total revenue declined by -2%. At fixed exchange rates revenue grew by 3%, of which organically by 2%.

Adjusted EBITA was stable year on year and amounted to SEK 11,398 million (11,430) and the adjusted EBITA margin was 19.3% (18.9). The reported EBITA increased by 22% to SEK 10,699 million (8,790) corresponding to a margin of 18.1% (14.5).

Financial items amounted to SEK -636 million (-1,070) and profit before tax was SEK 9,122 million (6,678).

The tax rate, excluding items affecting comparability, was 23.7% (24.0). The reported tax rate was 23.8% (25.6). The normalized tax rate was 23.7% (24.0), in line with guidance.

Profit for the period amounted to SEK 6,952 million (4,709). Earnings per share, diluted amounted to SEK 5.54 (3.75).

For the Group total, financial net debt decreased year-on-year to SEK 37.1 billion (40.5) resulting in a financial net debt to EBITDA ratio of 1.3 (1.5).

During the first six months, Sandvik completed nine acquisitions. In January, the assets of the CAM reseller FASTech Inc. were acquired. In February, three US based CAM resellers were acquired, ShopWare, Inc., MCAM Northwest, Inc. and OptiPro Systems, LLC. In addition four acquisitions were completed in March, the US-based CAM resellers: CadCam Solutions, Inc., CamTech Engineering Services, LLC and Barefoot CNC, Inc. along with the probing technology and post processor business of CIMCO PP ApS. In June, Sandvik also completed the acquisition of the US-based 3D metrology software solutions provider Verisurf Software, Inc..

Guidance and financial targets

Sandvik does not provide a market outlook or business performance forecasts. However, guidance relating to certain non-operational key figures considered useful when modeling financial outcome is provided in the table below:

Capex (cash)	Estimated at approx. SEK 4.5 billion for 2025.
Currency effects	Based on currency rates at the end of June 2025, it is estimated that transaction and translation currency effects will have an impact of about SEK -800 million on EBITA for the third quarter of 2025, compared with the year-earlier period.
Interest net	Estimated at approximately SEK -0.8 billion in 2025.
Tax rate	Estimated at 23-25% for 2025, normalized.

Sandvik has four long-term financial targets, re-confirmed for the strategy period 2025-2030

Growth

A growth of 7% through a business cycle organic and M&A, in fixed currency.

Adjusted EBITA range

An adjusted EBITA range of 20–22% through a business cycle adjusted for IAC.

Dividend payout ratio

A dividend payout ratio of 50% of EPS, adjusted for IAC, through a business cycle.

Financial net debt/EBITDA

A financial net debt/EBITDA of <1.5 excl. transformational M&A.

Accounting policies

Sandvik Group applies IFRS Accounting Standards as adopted by the EU. With exception for new and revised standards and interpretations effective from January 1, 2025 the same accounting and valuation policies were applied as in Sandvik Group Annual Report 2024. There are no new accounting policies applicable from 2025 that significantly affects Sandvik Group. This report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's RFR 2, Reporting for Legal Entities.

Transactions with related parties

No transactions between Sandvik and related parties that significantly affected the company's position and results took place.

Risk assessment

As an international group with a wide geographic spread, Sandvik is exposed to several strategic, business and financial risks. Strategic risk at Sandvik is defined as emerging risks affecting the business long-term, such as industry shifts, technological shifts, macroeconomic, geopolitical and environmental developments. The business risks can be divided into operational, sustainability, compliance, legal and commercial risks. The financial risks include currency risks, interest rates, raw material prices, tax risks, increased trade tariffs and more. These risk areas can all impact the business negatively both long and short term but often also create business opportunities if managed well.

Risk management at Sandvik begins with an assessment in operational management teams where the material risks for their operations are first identified, followed by an evaluation of the probability of the risks occurring and their potential impact on the Group. Once the key risks have been identified and evaluated risk mitigating activities to eliminate or reduce the risks are agreed on.

For a more detailed description of Sandvik's analysis of risks and risk universe, see the Annual Report for 2024.

Tariffs

Sandvik is a global company with international trade flows. In response to the 10% international tariffs announced in April, Sandvik has been taking measures to limit the financial impact, including re-routing trade flows and implemented tariff surcharges. The tariff negotiations between the US and many countries, including the EU, are still ongoing. Sandvik will continue to take mitigating actions if and when they become a reality. Examples of mitigating actions could be price increases, further re-routing of trade flows and increase production capacity in the US and other regions.

Potential indirect tariff impact of a weaker global economy is a risk for Sandvik that could have a material impact.

Financial reports summary The Group

Income statement

Revenues 31,419 29,700 -5 60,421 59,001 Cost of goods and services sold -18,410 -17,835 -3 -36,445 -34,702 Gross profit 13,009 11,865 -9 23,975 24,299 % of revenues 41.4 39.9 39.7 41.2 Selling expenses -3,968 -3,757 -5 -8,170 -7,640 Administrative expenses -2,128 -2,249 6 -4,850 -4,456	Q1-Q2 2024 Q1-Q2 2025 Change %	Change %	Q2 2025	Q2 2024	MSEK
	-2
	-5
	1
	-6
	-8
-1,227	5 -2,605 -2,380 -9			-1,168	Research and development costs
Other operating income and expenses -191 -80 -58 -602 -65	-89
Operating profit 5,554 4,552 -18 7,748 9,758	26
% of revenues 17.7 15.3 12.8 16.5
Financial income 140 161 15 315 365	16
Financial expenses -703 -501 -29 -1,385 -1,001	-28
Net financial items -563 -339 -40 -1,070 -636	-41
Profit before tax 4,990 4,212 -16 6,678 9,122	37
% of revenues 15.9 14.2 11.1 15.5
Income tax -1,528 -996 -35 -1,969 -2,170	10
Profit for the period 3,462 3,216 -7 4,709 6,952	48
% of revenues 11.0 10.8 7.8 11.8
Profit (loss) for the period attributable to
Owners of the parent company 3,462 3,216 -7 4,710 6,953	48
Non-controlling interest 0 0 n/m 0 0	n/m
Earnings per share, SEK
Earnings per share, basic 2.76 2.56 -7 3.75 5.54	48
Earnings per share, diluted 2.76 2.56 -7 3.75 5.54	48
Other comprehensive income
Items that will not be reclassified to profit (loss)
Actuarial gains (losses) on defined benefit pension plans -109 485 228 584
Tax relating to items that will not be reclassified 26 -103 -39 -130
Fair value adjustment – – – 2
Total items that will not be reclassified to profit (loss) -84 382 189 455
Items that may be reclassified subsequently to profit (loss)
Translation differences -1,034 -1,370 4,147 -9,810
Hedge reserve -58 177 -1,054 332
Tax relating to items that may be reclassified 12 -36 217 -68
Total items that may be reclassified subsequently to profit (loss) -1,081 -1,229 3,310 -9,546
Total other comprehensive income -1,164 -848 3,499 -9,091
Total comprehensive income 2,298 2,368 8,208 -2,139
Total comprehensive income attributable to
Owners of the parent company 2,297 2,371 8,207 -2,133
Non-controlling interest 0 -2 1 -6

The Group

Balance sheet

MSEK	Dec 31, 2024	Jun 30, 2024	Jun 30, 2025
Intangible assets	70,323	67,412	64,231
Property, plant and equipment	24,678	23,116	22,762
Right-of-use assets	5,877	5,707	5,616
Financial assets	10,004	11,062	9,793
Inventories	34,827	35,712	33,625
Current receivables	33,752	35,380	33,801
Cash and cash equivalents	4,528	5,375	3,449
Assets held for sale	395	210	214
Total Assets	184,384	183,974	173,491
Total equity	96,999	89,029	87,715
Non-current interest-bearing liabilities	40,869	40,464	37,122
Non-current non-interest-bearing liabilities	5,491	6,071	4,888
Current interest-bearing liabilities	6,269	15,336	13,368
Current non-interest-bearing liabilities	34,714	33,039	30,384
Liabilities held for sale	43	34	13
Total equity and liabilities	184,384	183,974	173,491

Changes in equity

	Equity related to owners
MSEK	of the parent company	Non-controlling interest	Total equity
Equity at January 1, 2024	87,631	66	87,697
Adjustment on correction of error	-77	–	-77
Equity at January 1, 2024	87,555	66	87,620
Total comprehensive income (loss) for the period	16,445	4	16,449
Change in fair value of put option to acquire non-controlling interest	-219	–	-219
Change in non-controlling interest	-6	6	–
Share based program	29	–	29
Dividend	-6,880	–	-6,880
Equity at December 31, 2024	96,924	75	96,999
Equity at January 1, 2025	96 924	75	96 999
Total comprehensive income (loss) for the period	-2 133	-6	-2 139
Change in fair value of put option to acquire non-controlling interest	42	–	42
Change in non-controlling interest	-1	1	–
Share based program	17	–	17
Dividend	-7 204	–	-7 204
Equity at June 30, 2025	87 646	69	87 715

The Group

Cash flow statement

MSEK	Q2 2024	Q2 2025	Q1-Q2 2024	Q1-Q2 2025
Cash flow from operating activities
Profit before tax	4,990	4,212	6,678	9,122
Adjustment for depreciation, amortization and impairment losses	1,936	1,823	4,061	3,711
Other adjustments for non-cash items	-1,045	586	1,332	-1,569
Payment to pension fund	-90	-85	-262	-198
Income tax paid	-1,709	-1,109	-3,705	-3,255
Cash flow from operating activities before changes in working capital	4,083	5,427	8,105	7,811
Changes in working capital
Change in inventories	50	-299	-257	-1,457
Change in operating receivables	-975	-623	-1,234	-1,062
Change in operating liabilities	-750	26	-186	877
Cash flow from changes in working capital	-1,676	-896	-1,677	-1,642
Investments in rental equipment	-312	-288	-616	-489
Proceeds from sale of rental equipment	65	57	139	170
Cash flow from operating activities, net	2,160	4,300	5,951	5,850
Cash flow from investing activities
Acquisitions of companies and shares, net of cash acquired	-850	-453	-1,063	-1,995
Acquisitions of tangible assets	-756	-699	-1,599	-1,403
Proceeds from sale of tangible assets	31	120	171	267
Acquisitions of intangible assets	-354	-251	-697	-563
Proceeds from sale of intangible assets	5	–	5	1
Acquisitions of financial assets	–	–	–	-1
Proceeds from sale of financial assets	16	–	16	2
Other investments, net	85	13	75	152
Cash flow from investing activities	-1,825	-1,271	-3,091	-3,540
Cash flow from financing activities
Repayment of borrowings	-590	-416	-3,748	-3,330
Proceeds from borrowings	9,371	3,835	9,384	8,260
Amortization, lease liabilities	-380	-347	-697	-697
Repurchase of own shares	-61	-303	-61	-6
Dividends paid	-6,880	-7,204	-6,880	-7,204
Cash flow from financing activities, net	1,460	-4,435	-2,003	-2,976
Total cash flow	1,795	-1,406	857	-665
Cash and cash equivalents at beginning of the period	3,577	4,965	4,363	4,528
Exchange-rate differences in cash and cash equivalents	3	-111	155	-414
Cash and cash equivalents at the end of the period	5,375	3,449	5,375	3,449

The Parent company

The parent company's invoiced sales after the first six months of 2025 amounted to SEK 7,157 million (7,544) and the operating result was SEK 1,007 million (499). Result from shares in Group companies of SEK 850 million (312) for the year consists of dividends.

Interest-bearing liabilities, less cash and cash equivalents and interest-bearing assets, amounted to SEK 47,154 million (42,871). Investments in property, plant and machinery amounted to SEK 119 million (239).

Income statement

MSEK	Q2 2024	Q2 2025	Q1-Q2 2024	Q1-Q2 2025
Revenues	3,649	3,272	7,544	7,157
Cost of goods and services sold	-1,858	-1,650	-3,889	-3,452
Gross profit	1,791	1,622	3,655	3,705
Selling expenses	-142	-218	-467	-424
Administrative expenses	-537	-614	-1,142	-1,101
Research and development costs	-368	-392	-918	-749
Other operating income and expenses	-260	-208	-629	-424
Operating result	484	190	499	1,007
Result from shares in group companies	312	367	312	850
Interest income/expenses and similar items	-461	-266	-819	-547
Result after financial items	335	291	-8	1,310
Appropriations	81	-4	142	7
Income tax	603	12	655	-124
Result for the period	1,019	299	789	1,193

Balance sheet

MSEK	Dec 31, 2024	Jun 30, 2024	Jun 30, 2025
Intangible assets	186	245	119
Property, plant and equipment	3,082	3,062	3,009
Financial assets	82,955	83,694	78,185
Inventories	1,062	1,211	1,181
Current receivables	9,621	8,285	10,358
Cash and cash equivalents	0	0	0
Total assets	96,906	96,497	92,852
Total equity	31,106	23,161	25,151
Untaxed reserves	929	914	921
Provisions	1,347	1,444	1,455
Non-current interest-bearing liabilities	24,063	24,346	19,458
Non-current non-interest-bearing liabilities	246	566	171
Current interest-bearing liabilities	34,895	42,401	42,563
Current non-interest-bearing liabilities	4,320	3,665	3,133
Total equity and liabilities	96,906	96,497	92,852
Interest-bearing liabilities and provisions minus cash and cash equivalents and interest-bearing assets	36,753	42,871	47,154
Investments in fixed assets	438	239	119

Market overview, the Group

Order intake by region

	Change*				Change*
MSEK	Q2 2025	%	%1)	Share %	Q1-Q2 2025	%	%1)	Share
The Group
Europe	7,506	-4	0	23	16,004	-6	-4	25
North America	9,147	32	11	28	16,916	18	8	26
South America	2,258	14	14	7	4,888	11	13	8
Africa/Middle East	3,588	4	-2	11	7,534	3	0	12
Asia	5,463	-5	2	17	11,491	1	-1	18
Australia	4,245	19	27	13	8,136	16	23	13
Total2)	32,206	10	7	100	64,969	6	4	100
Mining
Europe	1,600	-9	10	9	3,332	-6	4	10
North America	5,286	70	24	30	8,941	42	18	26
South America	1,692	22	22	9	3,699	17	18	11
Africa/Middle East	3,086	0	-7	17	6,507	1	-3	19
Asia	2,567	-9	9	14	5,563	4	1	16
Australia	3,656	20	29	20	6,984	16	26	20
Total	17,888	18	14	100	35,025	14	11	100
Rock Processing
Europe	407	-3	-3	16	893	-13	-9	16
North America	513	-5	-5	20	1,177	0	0	21
South America	297	-9	-9	11	653	-8	-1	12
Africa/Middle East	389	60	60	15	777	29	29	14
Asia	503	9	-19	19	983	3	-13	18
Australia	507	16	16	19	997	16	16	18
Total	2,616	8	2	100	5,480	2	2	100
Machining and Intelligent Manufacturing
Europe	5,498	-3	n/a	47	11,780	-6	n/a	48
North America	3,348	1	n/a	29	6,798	-2	n/a	28
South America	269	2	n/a	2	536	2	n/a	2
Africa/Middle East	113	-7	n/a	1	250	1	n/a	1
Asia	2,392	-3	n/a	20	4,945	-2	n/a	20
Australia	82	-3	n/a	1	156	-7	n/a	1
Total	11,702	-1	n/a	100	24,464	-3	n/a	100

*Organic change compared with the year-earlier period

1) Excluding major orders which is defined as above SEK 200 million for Mining and SEK 50 million for Rock Processing. 2) Includes rental fleet order intake in Q2 of SEK 305 million and SEK 603 million YTD, recognized according to IFRS 16. n/a = not applicable

Market overview, the Group

Revenues by region

MSEK	Q2 2025	Change, * %	Share, %	Q1-Q2 2025	Change *%	Share %
The Group
Europe	7,496	-5	25	15,195	-5	26
North America	7,929	11	27	15,291	6	26
South America	2,225	14	7	4,330	10	7
Africa/Middle East	3,599	0	12	7,236	2	12
Asia	4,985	5	17	10,051	4	17
Australia	3,465	2	12	6,897	3	12
Total1)	29,700	3	100	59,001	2	100
Mining
Europe	1,460	-9	9	2,932	-5	10
North America	4,007	19	26	7,409	13	25
South America	1,697	18	11	3,184	11	11
Africa/Middle East	3,138	-1	20	6,295	0	21
Asia	2,244	14	15	4,488	10	15
Australia	2,923	1	19	5,834	3	19
Total	15,469	7	100	30,144	6	100
Rock Processing
Europe	430	-13	17	901	-12	18
North America	591	4	24	1,145	5	22
South America	284	1	11	651	12	13
Africa/Middle East	341	16	14	688	18	13
Asia	391	-2	16	819	7	16
Australia	468	14	19	916	9	18
Total	2,505	2	100	5,120	5	100
Machining and Intelligent Manufacturing
Europe	5,606	-3	48	11,361	-5	48
North America	3,331	2	28	6,737	-1	28
South America	244	3	2	495	3	2
Africa/Middle East	120	1	1	253	5	1
Asia	2,350	-2	20	4,744	-2	20
Australia	74	-13	1	147	-7	1
Total	11,725	-1	100	23,736	-3	100

*Organic change compared with the year-earlier period

1) Includes rental fleet revenues in Q2 of SEK 240 million and SEK 489 million YTD , recognized according to IFRS 16.

The Group

Order Intake by Business Area

					Q1-Q4			Change
MSEK	Q1 2024	Q2 2024	Q3 2024	Q4 2024	2024	Q1 2025	Q2 2025	%	% *
Mining	15,849	17,043	14,994	16,518	64,404	17,138	17,888	5	18
Rock Processing	2,949	2,691	2,730	2,735	11,103	2,863	2,616	-3	8
Machining and Intelligent Manufacturing	13,184	12,621	11,073	12,309	49,187	12,762	11,702	-7	-1
Group Total1)	31,981	32,354	28,796	31,562	124,694	32,763	32,206	0	10

Revenues by Business Area

					Q1-Q4			Change
MSEK	Q1 2024	Q2 2024	Q3 2024	Q4 2024	2024	Q1 2025	Q2 2025	%	% *
Mining	14,312	16,151	15,838	17,306	63,607	14,675	15,469	-4	7
Rock Processing	2,446	2,704	2,750	2,803	10,704	2,615	2,505	-7	2
Machining and Intelligent Manufacturing	12,244	12,564	11,718	12,041	48,567	12,011	11,725	-7	-1
Group Total1)	29,002	31,419	30,306	32,151	122,878	29,301	29,700	-5	3

EBITA by Business Area

					Q1-Q4
MSEK	Q1 2024	Q2 2024	Q3 2024	Q4 2024	2024	Q1 2025	Q2 2025	Change %
Mining	2,084	3,336	3,243	3,781	12,443	3,033	3,125	-6
Rock Processing	-69	397	418	405	1,150	443	358	-10
Machining and Intelligent Manufacturing	964	2,480	1,885	2,285	7,614	2,427	1,681	-32
Group activities	-207	-195	-135	-178	-715	-191	-177	-9
Group Total1)	2,772	6,018	5,410	6,292	20,493	5,713	4,986	-17

EBITA margin by Business Area

					Q1-Q4
%	Q1 2024	Q2 2024	Q3 2024	Q4 2024	2024	Q1 2025	Q2 2025
Mining	14.6	20.7	20.5	21.8	19.6	20.7	20.2
Rock Processing	-2.8	14.7	15.2	14.4	10.7	16.9	14.3
Machining and Intelligent Manufacturing	7.9	19.7	16.1	19.0	15.7	20.2	14.3
Group Total1)	9.6	19.2	17.9	19.6	16.7	19.5	16.8

Adjusted EBITA by Business Area

					Q1-Q4
MSEK	Q1 2024	Q2 2024	Q3 2024	Q4 2024	2024	Q1 2025	Q2 2025	Change %
Mining	2,605	3,356	3,269	3,721	12,950	3,058	3,144	-6
Rock Processing	326	409	417	409	1,562	395	365	-11
Machining and Intelligent Manufacturing	2,485	2,579	2,314	2,340	9,718	2,506	2,297	-11
Group activities	-135	-195	-135	-182	-647	-191	-177	-9
Group Total 1)	5,281	6,149	5,866	6,288	23,583	5,768	5,629	-8

Adjusted EBITA margin by Business Area

%	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1-Q4 2024	Q1 2025	Q2 2025
Mining	18.2	20.8	20.6	21.5	20.4	20.8	20.3
Rock Processing	13.3	15.1	15.2	14.6	14.6	15.1	14.6
Machining and Intelligent Manufacturing	20.3	20.5	19.8	19.4	20.0	20.9	19.6
Group Total1)	18.2	19.6	19.4	19.6	19.2	19.7	19.0

* Organic change compared with the year-earlier period

1) Internal transactions had negligible effect on business area profits.

Items affecting comparability on EBITA

MSEK	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1-Q4 2024	Q1 2025	Q2 2025
Mining	-521	-20	-26	60	-507	-25	-19
Rock Processing	-395	-12	–	-4	-411	48	-7
Machining and Intelligent Manufacturing	-1,521	-99	-429	-55	-2,104	-79	-617
Group activities	-72	–	–	4	-67	–	–
Group Total	-2,509	-131	-455	5	-3,090	-56	-643

Q1 2025 – IAC of SEK -56 million, comprising of M&A costs primarily in Mining and Machining and Intelligent Manufacturing. A reallocation of structural measures has been done between Rock Processing and Machining and Intelligent Manufacturing, with no impact on the Group though.

Q2 2025 – IAC of SEK -643 million, comprising of structural measures within Machining to drive operational efficiency, margin resilience and support growth opportunities, announced in June, at a net cost of SEK -570 million and M&A costs within all business areas.

Adjusted EBIT and Adjusted EBITA per Business Area

Q2 2025, MSEK	Reported EBIT	Reported EBIT, %	IAC 1)	Adjusted EBIT	Adjusted EBIT, %	Amortizations 2)	Adjusted EBITA	Adjusted EBITA, %
Mining	3,020	19.5	-19	3,039	19.6	-103	3,144	20.3
Rock Processing	307	12.2	-7	313	12.5	-51	365	14.6
Machining and Intelligent Manufacturing	1,403	12.0	-617	2,019	17.2	-278	2,297	19.6
Group activities	-177	–	–	-177	–	–	-177	–
Group Total	4,552	15.3	-643	5,194	17.5	-432	5,629	19.0

1) For full details on IAC, see above. The line items affected are mainly Cost of goods and services sold SEK -203 million and Administrative expenses SEK -205 million. 2) Accounting effects arising from business combinations, referring to amortizations, depreciations and impairments. Primary related to costs within COGS and Selling expenses.

Taxes excluding items affecting comparability

Q2 2024, MSEK	Reported tax	Reported tax, %	IAC	IAC, %	Tax excluding IAC	Tax excluding IAC, %
Group Total	-1,528	30.6	-301	224.6	-1,227	23.9
Q2 2025
Group Total	-996	23.6	146	-22.7	-1,142	23.5

Adjusted earnings per share diluted

		IAC on net profit,		Adjustment for	Adj EPS, diluted excluding
Q2 2024, SEK	Reported EPS, diluted	MSEK	Adjusted EPS, diluted	surplus values, MSEK	surplus values
Group Total	2.76	-435	3.10	-389	3.41
Q2 2025
Group Total	2.56	-497	2.96	-370	3.25

Net debt

MSEK	Jun 30, 2024	Sep 30, 2024	Dec 31, 2024	Mar 31, 2025	Jun 30, 2025
Interest-bearing liabilities excluding pension and lease liabilities	45,919	41,349	36,644	36,202	40,562
Less cash and cash equivalents	-5,375	-4,035	-4,528	-4,965	-3,449
Financial net debt (net cash)	40,544	37,314	32,116	31,237	37,114
Net Pensions liabilities	2,496	3,018	2,888	2,798	2,401
Leases liabilities	5,938	5,723	6,111	5,641	5,749
Net debt	48,978	46,055	41,115	39,677	45,264
Financial net debt/EBITDA	1.5	1.4	1.2	1.1	1.3

Net working capital and capital employed

MSEK	Jun 30, 2024	Sep 30, 2024	Dec 31, 2024	Mar 31, 2025	Jun 30, 2025
Inventories	35,716	35,203	34,831	33,602	33,629
Trade receivables	20,970	19,390	19,896	19,250	19,439
Account payables	-9,940	-9,954	-10,114	-9,608	-9,990
Other receivables	6,002	5,995	6,384	5,672	5,746
Other liabilities	-14,830	-14,768	-15,095	-15,022	-14,562
Net working capital	37,918	35,866	35,902	33,893	34,262
Tangible assets	23,143	23,796	24,707	22,970	22,785
Intangible assets	67,508	67,665	70,493	65,494	64,340
Other assets (incl. cash and cash equivalents)	93,322	88,857	89,185	87,005	86,366
Other liabilities	-38,640	-38,979	-40,191	-35,006	-34,235
Capital employed	145,334	141,339	144,193	140,463	139,256

Return on capital employed by Business Area

ROCE, %	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025
Mining	21.7	21.4	21.6	23.3	23.3
Rock Processing	6.3	6.5	6.4	10.4	10.6
Machining and Intelligent Manufacturing	11.1	10.1	9.6	11.7	10.6
Group Total	14.1	13.5	13.4	15.4	14.8
ROCE, excluding amortization of surplus values, %
Mining	22.7	22.3	22.5	24.1	24.1
Rock Processing	8.3	8.6	8.4	12.3	12.4
Machining and Intelligent Manufacturing	12.9	11.9	11.6	13.6	12.5
Group Total	15.5	14.9	14.8	16.7	16.2

Key figures

Group total	Q2 2024	Q2 2025	Q1-Q2 2024	Q1-Q2 2025
Return on capital employed, %	14.1	14.8	14.1	14.8
Return on total equity, %	14.3	15.6	14.3	15.6
Shareholders' equity per share, SEK	70.9	69.9	70.9	69.9
Financial net debt / EBITDA	1.5	1.3	1.5	1.3
Net working capital, %	30.2	29.6	30.2	29.6
Earnings per share, basic, SEK	2.76	2.56	3.75	5.54
Earnings per share diluted, SEK	2.76	2.56	3.75	5.54
EBITDA, MSEK	7,489	6,374	11,809	13,469
Cash flow from operations, MSEK	2,160	4,300	5,951	5,850
Number of employees1)	40,344	41,639	40,344	41,639
No. of shares outstanding at end of period ('000)	1,254,386	1,254,386	1,254,386	1,254,386
Average no. of shares, ('000)	1,254,386	1,254,386	1,254,386	1,254,386
Average no. of shares, diluted, ('000)	1,256,120	1,255,561	1,256,112	1,255,644

1) Full-time equivalent.

Definitions of alternative performance measures

Sandvik presents below definitions of certain financial measures that are not defined in the interim report in accordance with IFRS. Sandvik believes that these measures have an important purpose of providing useful supplemental information to investors and the company's management when they allow evaluation of trends and the company's performance. As not all companies calculate the financial measures in the same way, these are not always comparable to measures used by other companies. These financial measures should not be seen as a substitute for measures defined under IFRS.

Adjusted EBITA

Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, adjusted for items affecting comparability.

Adjusted EBITA margin

Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, adjusted for items affecting comparability, in relation to sales.

Adjusted EPS

Profit/loss for the period adjusted for items affecting comparability attributable to equity holders of the parent company divided by the average number of shares outstanding during the year.

Adjusted EPS, diluted

Profit/loss for the period adjusted for items affecting comparability attributable to equity holders of the parent company divided by the average number of shares outstanding during the year including shares that will be allotted in the long-term incentive programs.

Adjusted EPS, diluted excluding amortization of surplus values

Profit for the period adjusted for items affecting comparability and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, net of tax, attributable to equity holders of the parent company, divided by the average number of shares outstanding during the year including shares that will be allotted in the long-term incentive programs.

Adjusted profit before tax

Profit before tax adjusted from items affecting comparability.

Capital employed

Capital employed is defined as total net working capital plus tangible and intangible assets, including those classified as asset held for sale, other current assets (incl. cash and cash equivalents) less other current liabilities.

Cash conversion

Free operating cash flow, adjusted for items affecting comparability divided by adjusted EBITA.

EBITA

Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments.

EBITDA

Operating profit (EBIT) less depreciation, amortization and impairments.

Financial net debt/EBITDA

Interest-bearing current and non-current liabilities, excluding net pension liabilities and leases, less cash equivalents divided by rolling 12 months EBITDA.

Free operating cash flow

Earnings before interest, taxes and depreciation adjusted for non-cash items and adjusted for cash items related to acquisitions not considered operational plus the change in net working capital minus investments and disposals of rental equipment and tangible and intangible assets.

Items affecting comparability (IAC)

Sandvik reports EBITA, EBIT, profit before tax and earnings per share adjusted for items affecting comparability. IAC includes capital gains and losses from divestments and larger restructuring initiatives, impairments, capital gains and losses from divestments of financial assets, M&A related costs as well as other material items having a significant impact on the comparability.

Net debt

Interest-bearing current and non-current liabilities, including net pension liabilities and leases, less cash and cash equivalents.

Net Working Capital (NWC)

Total of inventories, trade receivables, account payables and other current non-interest-bearing receivables and liabilities, including those classified as assets and liabilities held for sale/distribution, but excluding tax assets and tax liabilities and provisions.

Net working capital in relation to revenues

Net working capital on an average 12 month rolling basis divided by 12 month rolling revenues.

Order intake

Order intake for a period refers to the value of all orders received for immediate delivery and those orders for future delivery for which delivery dates and quantities have been confirmed. General sales agreements are included only when they have been finally agreed upon and confirmed. Service contracts are included in the order intake with the full binding contract amount upon signing.

Organic growth

Change in order intake and revenues after adjustments for exchange rate effects and structural changes such as divestments and acquisitions. Sandvik generates the majority of its revenues in currencies other than in the reporting currency (i.e. SEK, Swedish Krona). Organic growth is used to analyze the underlying sales performance in the Group.

Return on capital employed (ROCE)

Earnings before interest and taxes plus financial income, on a 12 month rolling basis, as a percentage of an average rolling 12 months capital employed.

Return on capital employed (ROCE), excluding amortization of surplus values

Earnings before interest and taxes, adjusted for accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, plus financial income, on a 12 month rolling basis, as a percentage of an average rolling 12 months capital employed.

Return on total equity

Consolidated net profit/loss for the year as a percentage of average total equity.

Disclaimer statement

Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially affected by other factors, for example the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and major customer credit losses.

Certification

The Board of Directors and the CEO certify that the six-month report gives a fair overview of the Parent Company's and the Group's operations, financial position and results, and describes the significant risks and uncertainties facing the Parent Company and the companies included in the Group.

Stockholm July 16, 2025 Sandvik Aktiebolag (publ)

Johan Molin Claes Boustedt Marika Fredriksson Chairman of the Board Board member Board member

Susanna Schneeberger Helena Stjernholm Kai Wärn Board member Board member Board member

Board member Board member Board member

Stefan Widing President & CEO Board member

Fredrik Håf Thomas Lilja Andreas Nordbrandt

The Company's Auditor has not reviewed the report for the first six months 2025.

This information is information that Sandvik AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 11:30 AM CEST on July 16, 2025.

Additional information may be obtained from Sandvik Investor Relations on +46 70 782 63 74 (Louise Tjeder).

A webcast and telephone conference will be held on July 16, 2025 at 1:00 PM CEST. Information is available at home.sandvik/investors

Calendar

October 20, 2025	Report, third quarter, 2025
January 27, 2026	Report, fourth quarter 2025
April 22, 2026	Report, first quarter 2026
July 17, 2026	Report, second quarter 2026
October 22, 2026	Report, third quarter 2026

Sandvik AB Box 510 SE-101 30 Stockholm +46 8 456 11 00 Corp Reg. No: 556000–3468